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What kind of taxes can I be expected to pay with my EB-5 investment?

If I make an investment with a regional center, what kind of taxes can I be expected to pay (in the U.S. and my home country)? Also, how long can I expect to keep my investment in the regional center?

Answers

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    Ed Beshara

    Immigration Attorney
    Answered on

    With the assistance and legal advice of an experienced EB-5 attorney and international tax attorney the investor can undertake tax planning to legally minimize their tax liability on their worldwide income.

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    John J Downey

    Immigration Attorney
    Answered on

    You need to employ a competent CPA to advise you on taxes. It is complex and based on the individual.

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    Lynne Feldman

    Immigration Attorney
    Answered on

    This will vary project by project, but you should only pay taxes on any profits.

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    Julia Roussinova

    Immigration Attorney
    Answered on

    Capital contribution into a regional center project (which is often a Limited Partnership formed under the laws of one of the states in the United States) is generally not a taxable event under the U.S. federal tax law. When you receive distributions on your investment during the term of investment, the partnership would generally provide you with necessary tax forms in order for you to prepare and file your annual non-resident federal income tax return (Form 1040NR) and any corresponding annual non-resident state income tax return. You should retain the services of an accountant in the United States who is familiar with preparation of non-resident tax returns. You must consult a licensed tax advisor or tax attorney in your home country to determine if there is any tax liability associated with your investment in the United States. Your funds must come from a lawful source and generally you must have paid all required taxes in your home country. For example, if your investment is derived from business income, you must pay corresponding income tax or equivalent tax on business earnings (salary, dividends, etc.) if such tax is imposed in your home country. If your funds are derived from the sale of real estate or personal property, you must pay any tax associated with the sale if such taxes are imposed in your home country. If no tax is imposed/required, this should be documented by a tax professional in your home country or by providing applicable excerpts from the relevant tax code sections or equivalent documentation. Terms of investment and when the capital contribution may be returned to you will depend upon the terms of the offering documents you sign with a regional center project in which you intend to invest. It is highly advisable that you retain the legal services of an experienced EB-5 immigration attorney and conduct due diligence of a regional center project prior to investing.

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    Salvatore Picataggio

    Immigration Attorney
    Answered on

    Regarding tax matters, I would refer you to a U.S. CPA, tax attorney or wealth management specialist. Regarding the length of time your investment will remain invested, most often the investment stays in the project or new commercial enterprise until the I-829 petition to remove conditions to permanent residency is approved. That is, when you get your full, condition-free green card, you can exit the investment. Please note that the particulars of this exit will depend on your investment project and regional center, but commonly you can expect to receive some kind of fair market value of your interest in the project.

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    Shahzad Q Qadri

    RC Creator
    Answered on

    Once you become a resident through your investment you are expected to pay taxes on your worldwide income. As to how long the investment has to remain is contingent upon the PPM for the specific RC. Generally, you can expect that the investment will be committed for a period of 5 years.

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